An Accountant Has Money in Three Accounts That Pay 8

question 248

Multiple Choice

An accountant has money in three accounts that pay 8%, 10%, and 12% in annual interest. He has twice as much invested at 8% as he does at 10% and three times as much invested at 12% as he does at 10%. If the total interest from the three accounts if $372 for the year, how much is invested at each rate? ( Hint : Let x = the amount invested at 10%.)

• A)$1,200 invested at 8% $600 invested at 10% $1,800 invested at 12%
• B)$1,120 invested at 8% $560 invested at 8% $1,080 invested at 12%
• C)$1,140 invested at 8% $570 invested at 10% $1,710 invested at 12%
• D)$1,220 invested at 8% $610 invested at 10% $1,830 invested at 12%
• E)$1,260 invested at 8% $630 invested at 10% $1,890 invested at 12%

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Definitions:

Adjusting Entry

A journal entry made in accounting to update the record of revenues earned or expenses incurred that have not been previously recorded.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.

Unearned Rent

Income received for rent before the rental period has occurred, classified as a liability until the period passes.

Adjusting Entry

An accounting record entry made at the conclusion of an accounting period to assign income and expenses to the period they genuinely happened.